Short-Term Rental Regulations

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UPDATE Monday, August 26, 2024 | During its regular meeting, the City of Bloomington City Council heard the study presentation and decided on the direction of the project. The City Council decided to keep the prohibition on lodgings less than 30 days (short-term rentals) and directed to prioritize on housing policies and ordinance that assists with housing production, affordability, availability, and attainability.

The Planning Division is conducting a study on short-term rental regulations in Bloomington. Short-term rentals (rentals less than 30 consecutive days) are currently prohibited in the city under §14.577(b). In the Code, short-term rentals are called "transient lodging" as listed in §14.568, Definitions.

Short-term rentals, often facilitated through platforms like Airbnb and VRBO, have become increasingly popular in recent years. While they offer numerous benefits to both hosts and guests, they also have significant impact on:

Housing Availability

Short-term rentals can reduce the supply of long-term rental housing in popular tourist destinations. Property owners may prefer renting to tourists at higher rates, potentially leading to a shortage of affordable housing for residents.
This scarcity can drive up rents and home prices, making it more challenging for individuals and families to find affordable housing.

Housing Affordability & Equity

Advocates for housing affordability argue that stricter regulation of short-term rentals is necessary to ensure that residents can find affordable housing.
The impact of short-term rentals varies across income levels, with higher-income hosts benefiting while lower-income renters may face housing challenges.

Housing Markets

The short-term rental market can lead to increased competition for properties, driving up home prices and making it harder for first-time homebuyers to enter the market.
In some areas, the presence of short-term rentals can create a real estate investment boom, as investors purchase properties specifically for rental purposes, potentially inflating property values.

Economics

Short-term rentals can boost the local economy by bringing in tourists who spend money on accommodations, dining, and entertainment.
Hosts can generate income by renting out their properties, potentially helping homeowners offset their housing costs.

Communities and Neighborhoods

Frequent turnover of short-term rental guests can disrupt the sense of community in residential neighborhoods. Neighbors may be uncomfortable with strangers constantly coming and going.
Noise, parking, and safety concerns associated with short-term rentals can affect the quality of life for residents.

Regulation & Monitoring

Tracking the impact of short-term rentals on housing and neighborhoods requires access to data, which can be challenging due to the decentralized nature of platforms like Airbnb.

With these considerations, careful and deliberate regulation will be necessary to facilitate the positive impacts for residents and visitors and mitigate the negative impacts on housing and equity. To assist decision-making, the study results and recommendations will be presented to Planning Commission and City Council to solicit their feedback and direction, which could lead to amendments to the City Code regarding short-term rentals. As the process progresses, any amendments would require public hearings at the Planning Commission and the City Council meetings.

Housing Availability

Short-term rentals can reduce the supply of long-term rental housing in popular tourist destinations. Property owners may prefer renting to tourists at higher rates, potentially leading to a shortage of affordable housing for residents.
This scarcity can drive up rents and home prices, making it more challenging for individuals and families to find affordable housing.

Housing Affordability & Equity

Advocates for housing affordability argue that stricter regulation of short-term rentals is necessary to ensure that residents can find affordable housing.
The impact of short-term rentals varies across income levels, with higher-income hosts benefiting while lower-income renters may face housing challenges.

Housing Markets

The short-term rental market can lead to increased competition for properties, driving up home prices and making it harder for first-time homebuyers to enter the market.
In some areas, the presence of short-term rentals can create a real estate investment boom, as investors purchase properties specifically for rental purposes, potentially inflating property values.

Economics

Short-term rentals can boost the local economy by bringing in tourists who spend money on accommodations, dining, and entertainment.
Hosts can generate income by renting out their properties, potentially helping homeowners offset their housing costs.

Communities and Neighborhoods

Frequent turnover of short-term rental guests can disrupt the sense of community in residential neighborhoods. Neighbors may be uncomfortable with strangers constantly coming and going.
Noise, parking, and safety concerns associated with short-term rentals can affect the quality of life for residents.

Regulation & Monitoring

Tracking the impact of short-term rentals on housing and neighborhoods requires access to data, which can be challenging due to the decentralized nature of platforms like Airbnb.

Questions

CLOSED: This discussion has concluded.

Share Hi Michelle, thank you for your presentation tonight. One thing that I believe should be looked into is allowing a certain # of limited STR's. Stillwater does this, duluth too. It could give current Bloomington homeowners an advantage while keeping larger corporations/investors out. It would help contribute to tax revenue and help pay for staffing. It could be more of a hybrid model than an all or nothing approach. on Facebook Share Hi Michelle, thank you for your presentation tonight. One thing that I believe should be looked into is allowing a certain # of limited STR's. Stillwater does this, duluth too. It could give current Bloomington homeowners an advantage while keeping larger corporations/investors out. It would help contribute to tax revenue and help pay for staffing. It could be more of a hybrid model than an all or nothing approach. on Twitter Share Hi Michelle, thank you for your presentation tonight. One thing that I believe should be looked into is allowing a certain # of limited STR's. Stillwater does this, duluth too. It could give current Bloomington homeowners an advantage while keeping larger corporations/investors out. It would help contribute to tax revenue and help pay for staffing. It could be more of a hybrid model than an all or nothing approach. on Linkedin Email Hi Michelle, thank you for your presentation tonight. One thing that I believe should be looked into is allowing a certain # of limited STR's. Stillwater does this, duluth too. It could give current Bloomington homeowners an advantage while keeping larger corporations/investors out. It would help contribute to tax revenue and help pay for staffing. It could be more of a hybrid model than an all or nothing approach. link

Hi Michelle, thank you for your presentation tonight. One thing that I believe should be looked into is allowing a certain # of limited STR's. Stillwater does this, duluth too. It could give current Bloomington homeowners an advantage while keeping larger corporations/investors out. It would help contribute to tax revenue and help pay for staffing. It could be more of a hybrid model than an all or nothing approach.

David Chase asked 3 months ago

Thank you for your comments and feedback! Registration limits are definitely an option to consider if short-term rentals are allowed. Stay tuned for the City Council meeting on August 26, 2024 to see more discussion about the options.
Share How many Bloomington residents will likely be interested in renting their house for short term rental? I'm assuming it's minimal. But for those who do, the economic boost to them and the city can be measurable. I think it need to be regulated. on Facebook Share How many Bloomington residents will likely be interested in renting their house for short term rental? I'm assuming it's minimal. But for those who do, the economic boost to them and the city can be measurable. I think it need to be regulated. on Twitter Share How many Bloomington residents will likely be interested in renting their house for short term rental? I'm assuming it's minimal. But for those who do, the economic boost to them and the city can be measurable. I think it need to be regulated. on Linkedin Email How many Bloomington residents will likely be interested in renting their house for short term rental? I'm assuming it's minimal. But for those who do, the economic boost to them and the city can be measurable. I think it need to be regulated. link

How many Bloomington residents will likely be interested in renting their house for short term rental? I'm assuming it's minimal. But for those who do, the economic boost to them and the city can be measurable. I think it need to be regulated.

Tade asked 4 months ago

Thank you for your comments! Economic opportunity for hosts will be discussed in the staff report. Please follow along for the report presentation to Planning Commission on August 15th; they will give their recommendation to City Council to inform the next phase of the project. The City Council presentation is on August 26th.
Share Unfortunately, the City of Bloomington is currently constricting the freedom of homeowners to rent in whatever capacity is best for them and their families, especially if they are Bloomington residents. As a Bloomington resident already vested in the city, living in the city, and paying taxes in the city, I am offended that the city feels it is their right to make this decision for me. Allow Airbnb rentals for residents of Bloomington only ~ it is an easy, unbiased, clear-cut, and fair solution. Live in the city, you can rent short-term in the city. I am in a situation where we will be forced to move out of Bloomington if we are not allowed to rent short term. I don't think Bloomington is aware of this decision's impact on the responsible homeowners who need to rent in order to remain a resident of the city. on Facebook Share Unfortunately, the City of Bloomington is currently constricting the freedom of homeowners to rent in whatever capacity is best for them and their families, especially if they are Bloomington residents. As a Bloomington resident already vested in the city, living in the city, and paying taxes in the city, I am offended that the city feels it is their right to make this decision for me. Allow Airbnb rentals for residents of Bloomington only ~ it is an easy, unbiased, clear-cut, and fair solution. Live in the city, you can rent short-term in the city. I am in a situation where we will be forced to move out of Bloomington if we are not allowed to rent short term. I don't think Bloomington is aware of this decision's impact on the responsible homeowners who need to rent in order to remain a resident of the city. on Twitter Share Unfortunately, the City of Bloomington is currently constricting the freedom of homeowners to rent in whatever capacity is best for them and their families, especially if they are Bloomington residents. As a Bloomington resident already vested in the city, living in the city, and paying taxes in the city, I am offended that the city feels it is their right to make this decision for me. Allow Airbnb rentals for residents of Bloomington only ~ it is an easy, unbiased, clear-cut, and fair solution. Live in the city, you can rent short-term in the city. I am in a situation where we will be forced to move out of Bloomington if we are not allowed to rent short term. I don't think Bloomington is aware of this decision's impact on the responsible homeowners who need to rent in order to remain a resident of the city. on Linkedin Email Unfortunately, the City of Bloomington is currently constricting the freedom of homeowners to rent in whatever capacity is best for them and their families, especially if they are Bloomington residents. As a Bloomington resident already vested in the city, living in the city, and paying taxes in the city, I am offended that the city feels it is their right to make this decision for me. Allow Airbnb rentals for residents of Bloomington only ~ it is an easy, unbiased, clear-cut, and fair solution. Live in the city, you can rent short-term in the city. I am in a situation where we will be forced to move out of Bloomington if we are not allowed to rent short term. I don't think Bloomington is aware of this decision's impact on the responsible homeowners who need to rent in order to remain a resident of the city. link

Unfortunately, the City of Bloomington is currently constricting the freedom of homeowners to rent in whatever capacity is best for them and their families, especially if they are Bloomington residents. As a Bloomington resident already vested in the city, living in the city, and paying taxes in the city, I am offended that the city feels it is their right to make this decision for me. Allow Airbnb rentals for residents of Bloomington only ~ it is an easy, unbiased, clear-cut, and fair solution. Live in the city, you can rent short-term in the city. I am in a situation where we will be forced to move out of Bloomington if we are not allowed to rent short term. I don't think Bloomington is aware of this decision's impact on the responsible homeowners who need to rent in order to remain a resident of the city.

Jane asked 4 months ago

Thank you for your comments! The study will be presented to Planning Commission on August 15th and will give their recommendation to City Council for the August 26th presentation.
Share As a Bloomington resident I would like to encourage the city to consider short term rental or accessory home share once again. on Facebook Share As a Bloomington resident I would like to encourage the city to consider short term rental or accessory home share once again. on Twitter Share As a Bloomington resident I would like to encourage the city to consider short term rental or accessory home share once again. on Linkedin Email As a Bloomington resident I would like to encourage the city to consider short term rental or accessory home share once again. link

As a Bloomington resident I would like to encourage the city to consider short term rental or accessory home share once again.

Becky asked 4 months ago

Thank you for your comments! Planning Commission will hear the study item on August 15th and give their recommendation to City Council. The Council meeting will be held August 26th.
Share It is misleading to state that short-term Airbnb-type rentals have a higher risk of noise, parking, and safety. Long-term tenants are no better or worse than short-term tenants. There is much more control available for vetting short-term tenants, along with the ability to discontinue renting versus the process of evicting a long-term tenant that is loud or threatening. If an Airbnb tenant is loud and hostile or invites all his friends to the rental property, he will never be able to rent again. Reputation is everything on platforms like Airbnb for both the homeowner and the renter. Homeowners take better care of their property for better reviews, and tenants will follow the rules to continue to rent. I have two homes on my street in Bloomington, one abandoned, with peeling paint and grass 3 feet high. It's an eyesore and certainly doesn't enhance my community. The other is my next-door neighbor, who has been cleaning up his junk-filled yard for three years with the city, and it is still slogging on—another eye-sore. I prefer a beautifully maintained Airbnb next door with vetted tenants versus the houses now bringing down my property value. The level of information and control that the homeowner has access to for every potential tenant eliminates almost all of the risk, and the homeowner makes the rules (limiting cars/noise/etc.), and rarely do tenants decide to break those rules since they know they will be kicked off of the platform. Communities need to also open up to those "outside" of their communities - it's discriminatory otherwise. The good that can come from making those connections would shine a light on Bloomington as a welcoming city in Minnesota. People visiting Minnesota want options and a fair market vs only being able to book their stay at a hotel in Bloomington. They will go to St. Paul and Minneapolis instead, and Bloomington just lost revenue. Stop all the unnecessary regulations and give homeowners their freedom back and the ability to book tenants anytime, from two days to multiple months. on Facebook Share It is misleading to state that short-term Airbnb-type rentals have a higher risk of noise, parking, and safety. Long-term tenants are no better or worse than short-term tenants. There is much more control available for vetting short-term tenants, along with the ability to discontinue renting versus the process of evicting a long-term tenant that is loud or threatening. If an Airbnb tenant is loud and hostile or invites all his friends to the rental property, he will never be able to rent again. Reputation is everything on platforms like Airbnb for both the homeowner and the renter. Homeowners take better care of their property for better reviews, and tenants will follow the rules to continue to rent. I have two homes on my street in Bloomington, one abandoned, with peeling paint and grass 3 feet high. It's an eyesore and certainly doesn't enhance my community. The other is my next-door neighbor, who has been cleaning up his junk-filled yard for three years with the city, and it is still slogging on—another eye-sore. I prefer a beautifully maintained Airbnb next door with vetted tenants versus the houses now bringing down my property value. The level of information and control that the homeowner has access to for every potential tenant eliminates almost all of the risk, and the homeowner makes the rules (limiting cars/noise/etc.), and rarely do tenants decide to break those rules since they know they will be kicked off of the platform. Communities need to also open up to those "outside" of their communities - it's discriminatory otherwise. The good that can come from making those connections would shine a light on Bloomington as a welcoming city in Minnesota. People visiting Minnesota want options and a fair market vs only being able to book their stay at a hotel in Bloomington. They will go to St. Paul and Minneapolis instead, and Bloomington just lost revenue. Stop all the unnecessary regulations and give homeowners their freedom back and the ability to book tenants anytime, from two days to multiple months. on Twitter Share It is misleading to state that short-term Airbnb-type rentals have a higher risk of noise, parking, and safety. Long-term tenants are no better or worse than short-term tenants. There is much more control available for vetting short-term tenants, along with the ability to discontinue renting versus the process of evicting a long-term tenant that is loud or threatening. If an Airbnb tenant is loud and hostile or invites all his friends to the rental property, he will never be able to rent again. Reputation is everything on platforms like Airbnb for both the homeowner and the renter. Homeowners take better care of their property for better reviews, and tenants will follow the rules to continue to rent. I have two homes on my street in Bloomington, one abandoned, with peeling paint and grass 3 feet high. It's an eyesore and certainly doesn't enhance my community. The other is my next-door neighbor, who has been cleaning up his junk-filled yard for three years with the city, and it is still slogging on—another eye-sore. I prefer a beautifully maintained Airbnb next door with vetted tenants versus the houses now bringing down my property value. The level of information and control that the homeowner has access to for every potential tenant eliminates almost all of the risk, and the homeowner makes the rules (limiting cars/noise/etc.), and rarely do tenants decide to break those rules since they know they will be kicked off of the platform. Communities need to also open up to those "outside" of their communities - it's discriminatory otherwise. The good that can come from making those connections would shine a light on Bloomington as a welcoming city in Minnesota. People visiting Minnesota want options and a fair market vs only being able to book their stay at a hotel in Bloomington. They will go to St. Paul and Minneapolis instead, and Bloomington just lost revenue. Stop all the unnecessary regulations and give homeowners their freedom back and the ability to book tenants anytime, from two days to multiple months. on Linkedin Email It is misleading to state that short-term Airbnb-type rentals have a higher risk of noise, parking, and safety. Long-term tenants are no better or worse than short-term tenants. There is much more control available for vetting short-term tenants, along with the ability to discontinue renting versus the process of evicting a long-term tenant that is loud or threatening. If an Airbnb tenant is loud and hostile or invites all his friends to the rental property, he will never be able to rent again. Reputation is everything on platforms like Airbnb for both the homeowner and the renter. Homeowners take better care of their property for better reviews, and tenants will follow the rules to continue to rent. I have two homes on my street in Bloomington, one abandoned, with peeling paint and grass 3 feet high. It's an eyesore and certainly doesn't enhance my community. The other is my next-door neighbor, who has been cleaning up his junk-filled yard for three years with the city, and it is still slogging on—another eye-sore. I prefer a beautifully maintained Airbnb next door with vetted tenants versus the houses now bringing down my property value. The level of information and control that the homeowner has access to for every potential tenant eliminates almost all of the risk, and the homeowner makes the rules (limiting cars/noise/etc.), and rarely do tenants decide to break those rules since they know they will be kicked off of the platform. Communities need to also open up to those "outside" of their communities - it's discriminatory otherwise. The good that can come from making those connections would shine a light on Bloomington as a welcoming city in Minnesota. People visiting Minnesota want options and a fair market vs only being able to book their stay at a hotel in Bloomington. They will go to St. Paul and Minneapolis instead, and Bloomington just lost revenue. Stop all the unnecessary regulations and give homeowners their freedom back and the ability to book tenants anytime, from two days to multiple months. link

It is misleading to state that short-term Airbnb-type rentals have a higher risk of noise, parking, and safety. Long-term tenants are no better or worse than short-term tenants. There is much more control available for vetting short-term tenants, along with the ability to discontinue renting versus the process of evicting a long-term tenant that is loud or threatening. If an Airbnb tenant is loud and hostile or invites all his friends to the rental property, he will never be able to rent again. Reputation is everything on platforms like Airbnb for both the homeowner and the renter. Homeowners take better care of their property for better reviews, and tenants will follow the rules to continue to rent. I have two homes on my street in Bloomington, one abandoned, with peeling paint and grass 3 feet high. It's an eyesore and certainly doesn't enhance my community. The other is my next-door neighbor, who has been cleaning up his junk-filled yard for three years with the city, and it is still slogging on—another eye-sore. I prefer a beautifully maintained Airbnb next door with vetted tenants versus the houses now bringing down my property value. The level of information and control that the homeowner has access to for every potential tenant eliminates almost all of the risk, and the homeowner makes the rules (limiting cars/noise/etc.), and rarely do tenants decide to break those rules since they know they will be kicked off of the platform. Communities need to also open up to those "outside" of their communities - it's discriminatory otherwise. The good that can come from making those connections would shine a light on Bloomington as a welcoming city in Minnesota. People visiting Minnesota want options and a fair market vs only being able to book their stay at a hotel in Bloomington. They will go to St. Paul and Minneapolis instead, and Bloomington just lost revenue. Stop all the unnecessary regulations and give homeowners their freedom back and the ability to book tenants anytime, from two days to multiple months.

Phil asked 4 months ago

Thank you for your comments regarding short-term rentals. Noise, parking, and other like impacts will be addressed in the staff report along with potential regulations that can help mitigate those impacts. The Planning Commission packet that includes the staff report will be published prior to the meeting and can be viewed online here: https://www.bloomingtonmn.gov/cob/city-meetings-agendas-webcasts-and-documents.
Share I hope the City considers amending to allow. Much of the negative impacts described can be mitigated by reasonable regulations. And opposition to medium- and high-density housing projects has a far greater impact on housing affordability and inequality than does a handful of short-term rental properties. Consumer demand for short-term rentals is clearly out there, and it is short-sighted to ban it outright. on Facebook Share I hope the City considers amending to allow. Much of the negative impacts described can be mitigated by reasonable regulations. And opposition to medium- and high-density housing projects has a far greater impact on housing affordability and inequality than does a handful of short-term rental properties. Consumer demand for short-term rentals is clearly out there, and it is short-sighted to ban it outright. on Twitter Share I hope the City considers amending to allow. Much of the negative impacts described can be mitigated by reasonable regulations. And opposition to medium- and high-density housing projects has a far greater impact on housing affordability and inequality than does a handful of short-term rental properties. Consumer demand for short-term rentals is clearly out there, and it is short-sighted to ban it outright. on Linkedin Email I hope the City considers amending to allow. Much of the negative impacts described can be mitigated by reasonable regulations. And opposition to medium- and high-density housing projects has a far greater impact on housing affordability and inequality than does a handful of short-term rental properties. Consumer demand for short-term rentals is clearly out there, and it is short-sighted to ban it outright. link

I hope the City considers amending to allow. Much of the negative impacts described can be mitigated by reasonable regulations. And opposition to medium- and high-density housing projects has a far greater impact on housing affordability and inequality than does a handful of short-term rental properties. Consumer demand for short-term rentals is clearly out there, and it is short-sighted to ban it outright.

JGB asked 8 months ago

Thank you for contributing to the project! Options to allow will be researched and presented to the Planning Commission and City Council. Stay tuned for more information later this year.
Share Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations? on Facebook Share Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations? on Twitter Share Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations? on Linkedin Email Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations? link

Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations?

Jeff Ferber asked 10 months ago

Thank you for your question! The study of short-term rentals is currently in progress and specific dates for when it will be presented to Planning Commission and City Council have not been determined. The direction of the project and whether a policy or Code amendments will be implemented (and the exact content of the possible amendments) will be developed after the study item presentation. To stay updated on the project and when presentations will be held, please sign up for updates or email alerts through this project page; meeting dates and engagement opportunities will be posted as they are confirmed.

code-amendments,stay-informed,project-schedule
code-amendments stay-informed project-schedule
Share I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota. on Facebook Share I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota. on Twitter Share I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota. on Linkedin Email I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota. link

I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota.

Raj Bahl asked 11 months ago

Thank you for your comment! We will include economic factors into the study item.

economic-impact,tourism
economic-impact tourism

Page last updated: 12 Sep 2024, 11:29 AM

Short-Term Rental Regulations

How many Bloomington residents will likely be interested in renting their house for short term rental? I'm assuming it's minimal. But for those who do, the economic boost to them and the city can be measurable. I think it need to be regulated.

As a Bloomington resident I would like to encourage the city to consider short term rental or accessory home share once again.

Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations?

I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota.

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